LONDON, June 28, 2019 /PRNewswire/ — Globacap, a regulated fintech leveraging blockchain for efficient capital raising, securities administration, and custody, announced today that it successfully exited from the FCA’s regulatory Sandbox Cohort 4, becoming the UK’s first fully regulated digital security offering and administration platform.
Globacap is a market leading automated capital markets platform for digital securities such as shares, bonds, and funds. Any of Globacap’s products – capital raising, capital administration, or custody – can be used independently. Globacap is authorised and regulated by the Financial Conduct Authority (FCA).
The firm entered the FCA’s regulatory Sandbox last year to trial its innovative new technology in a controlled manner with regulatory oversight, as a step towards full regulatory authorisation.
Within the Sandbox, Globacap executed the world’s first equity tokenization as a direct holding, and then did it twice more for clients. The first, in August 2018, saw Globacap’s own shares become digitised. The second and third in 2019 were for UK based companies, where Globacap acted as a regulated arranger and custodian in each capital raise, while digitising their respective shares.
Globacap’s innovative technology creates a digital token that forms the legal security – whether a share, bond, or fund interest. The token’s in-built processes facilitate further transactions by automatically fulfilling the legal requirements of a transfer of ownership. Such transactions are recorded on the underlying blockchain. This is different to other types of security tokens that merely provide a digital receipt of ownership.
Globacap is at the forefront of providing a more open capital market, leveraging blockchain technology, to make private investments more efficient. This is expected to spur a new wave of economic growth as previously illiquid investments become accessible.
Blockchain is increasingly recognised as a stable and innovative technology that can transform the financial services sector, offering greater security and efficiency. Globacap’s platform leverages blockchain to bring capital raising and securities administration into the digital world, while still complying with existing regulations.
Myles Milston, CEO of Globacap, commented, “The Sandbox programme has been a great experience, enabling us to come to market with a new application of an emerging technology in a controlled but quicker manner. From our groundbreaking proof of concept in August last year, to our product now coming to market, the support from the Innovate Team at the FCA was instrumental in the success of this journey.”